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In response to Councilmember Brown's inquiries, Housing Program Manager Hernandez clarified 100% AMI is not included because the City was following the AC Boost program and clarified the program requires the buyer to include personal funds sufficient for at least a 3% down payment. He added DPA money can be used for closing costs and other related expenses. In response to Councilmember Brown's inquiry, Housing Program Manager Hernandez clarified the Housing Commission wanted the rate at 150% of the AMI and not 120%. Assistant City Manager Dolan added there was significant discussion on raising the sum for the DPA but placing it that high would have prohibited usage of the Low-Income Housing Fund which uses 120% as a benchmark. Housing Program Manager Hernandez added 150% would also eliminate them from the AC Boost program. In response to Councilmember Brown's inquiries, Assistant City Manager Dolan clarified there are no specific titles included in the existing Preferences Program so the Housing Commission recommended adding titles that still need to be finalized. He hopes to have this ready by the end of the year if directed by the City Council. He also advised he would be happy to conduct annual reviews of the funding. In response to Councilmember Brown's inquiries, Housing Program Manager Hernandez confirmed 40% DTI ratio is an industry-standard for all home loans. He added the program requires a fixed- interest rate mortgage for 30 years. In response to Councilmember Narum's inquiry, Housing Program Manager Hernandez confirmed all the money for the program would be from the Low-Income Housing Fund. In response to Councilmember Narum's inquiries, Assistant City Manager Dolan advised the City would use the Preference Program if there are more qualified applicants than funds available. He noted the Housing Department would ask City Council for direction on how they wish to proceed in terms of funding for the following year. He committed to returning to City Council sooner if eligible applicants were remaining after the year's funds have been exhausted. He confirmed there is no plan for the remainder of the $10 million in the Low-Income Housing Fund but the City does not want to exhaust all of it on this program as a portion must be reserved for non-profits and others who may potentially request it. In response to Councilmember Narum's inquiry, Housing Program Manager Hernandez confirmed the house must be homeowner occupied and the City would call the note if the house is found to have been rented. He advised Hello Housing surveys as a part of its annual monitoring. He advised the City could potentially become the third position if there is a default on the loan with that decision resting on the court. For that reason, he advised the City proactively monitors the fiscal health of DPA homeowners. In response to Mayor Thorne's inquiry, Housing Program Manager Hernandez explained the 80% and 120% figures are calculated at a lower affordability level and are not based on Pleasanton income rates. He advised the numbers are below the income levels for Alameda County, so they are acceptable. He noted lowering the levels also helps lower affordability restrictions for the buyer. Assistant City Manager Dolan added the methodology the City uses to adjust it downward was adopted many years ago. Councilmember Narum moved to approve the modifications to the City's Down Payment Assistance Program, including increasing the loan amount from $20..000 to $100.000. restructuring the loan to a Deferred Payment Loan. adopting a Shared Appreciation Loan, and request staff to return with the Preference Program before the end of the calendar year. Councilmember Narum expressed her support for the program which would help residents achieve homeownership and noted the $100,000 is still more affordable than subsidizing a below-market apartment unit. She suggests discussing allocating more than $300,000 if there is a groundswell of interest at midterm. City Council Minutes Page 4 of 5 October 20. 2020